Simple Guidelines on writing a workable business plan

Economic crisis is not the cause of business collapse

Many businesses today have been brought down not only by the global recession but also by mismanagement. It is not in order to assume that the global economic crisis should only be working against your business. Many managers who are failing today are blaming the bad economic conditions for their poor performance. A good business manager should be able to look for effective ways of handling a bad situation and getting the best out of it.

One of the most deceiving business ideas is that by putting your eggs indifferent baskets, you are going to be successful. Most of the managerial trainings include what is commonly called ‘portfolio management’. This theory supports the idea of investment diversification. This is why managers think that during bad financial moments for the business, they need to diversify their investments in order to reduce the risk of losses. This may not be a solution if the management style is wrong. A poor manager will still fail even in a diversified portfolio.

Many are left wondering about what they should do if diversification is not working. The truth is that diversification should only be left for those who are not sure of making it in one line. Instead of diversifying your investments, you should be thinking of specialization.

You should be looking for the best business strategies that can make you a king in your line of operation. Unfortunately, many business managers view success as only retaining some profits for the business. Very few people are endeavoring to be the most outstanding businessmen.

Saturday, October 3, 2009

Simple Guidelines on writing a workable business plan

Have you ever considered putting down a business plan? Many people have considered it a hard task and left it in the hands of experts. What you do not understand is that there is nobody who can correctly put down the plan as you can for yourself. Everyone who intends to engage him/herself or is already in business must learn how to write a workable business plan.

The author of this article therefore intends to demystify the issues of planning for your business. To begin, you must ask yourself what kind of business you want to engage in. I simple terms, a business plan is what you are visualizing to be your business, the way it will be run and the expected results.

This clearly suggests that you must begin by putting down your vision, mission and the objectives of your business. The vision is how far you want you business to go while the mission means the strategies that will be put in place to achieve your vision.

Next your must think about the financial aspects of your business. This is simply known as the financial plan. Here, one considers how the business will be funded and the ways in which such funds will be used.

The operations plan comes next. This is where you clearly state how you will run your business. Others call it the organizational structure. Organize your company in a way that it will work best.

The marketing aspects of the company cannot be ignored. This calls for a marketing plan. Here, think on the ways of marketing the products you produce.